Download Interference in the labour market

yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts

Minimum wage wikipedia, lookup

Labour law wikipedia, lookup

Interference in
the labour
Minimum Wage
minimum amount per hour which most
workers are entitled to be paid.
 U.S.
minimum wage is 15,000 USD /year
 Ghana
minimum wage is 689 USD/year
Reasons for Minimum Wages
 Increases
the standard of living for the
poorest and most vulnerable people in
 Hopefully this would reduce poverty.
Reasons for Minimum Wages
 Stimulates
consumption by putting more
money into the hands of people who
quickly spend their entire paycheck.
The Effects of Minimum Wage
 This
can be illustrated using supply and
demand .
Reasons Against Minimum
 Some
people are willing to work for less,
yet employers cannot hire them at that
wage rate.
 Reduces
the quantity of workers
 May
cause price inflation.
Do minimum wages cause job
 Answer
this correctly and you can skip the
remaining economics classes for the
 How does the elasticity of demand affect
your answer?
 What if the minimum wage is the same as
the equilibrium wage?
 What about the studies in your book?
Trade Unions
 These
are organisations that exist to
protect the interests of workers.
 Remember
the voice of all is stronger than
the voice of one.
Trade Unions
 They
negotiate pay and working
 They
provide legal protection.
 They
can put pressure on governments.
Trade Unions
strong trade union can force wage
rates to go up in some labour markets.
 This
wage rate may be above the
equilibrium price for that kind of labour.
 This
is not market efficiency at its best.
Trade Unions
 How
would you feel about a strong trade
union if you were an employee of a
 How
would you feel if you were the owner
of the business?
Factors To Consider
 Elasticity
of demand for labour.
Machines do not go on strike.
Machines do not need dental insurance.
 Does
the employer need to hire only
union employees?
 Does
the employee need to be a
member of the union?